20220915-KPMG_Global-South_Africa_–_New_Process_for_Breaking_Tax_Residency_4页_332kb

South African Revenue Service (SARS) Announcement on Ceasing Tax Residency

• Effective changes: SARS now requires all individuals ceasing tax residency to use the Registration Amendment and Verification (RAV01) form on the SARS eFiling platform, replacing prior methods like the annual tax return (ITR12) or email submissions, which is no longer available.

• Process update: The RAV01 must be updated before submitting the ITR12 to avoid manual tax returns or delays in income tax assessment. Once updated and submitted, SARS will reflect the cessation date on both forms and request supporting documentation.

• Standard requirements (to be submitted with the declaration):

  • Signed declaration form from eFiling, specifying the basis for ceasing residency.
  • Letter of motivation detailing the facts and circumstances supporting the claim.
  • Copy of the taxpayer’s passport or travel diary showing departure date.

• Additional documentation (may be requested by SARS):

  • Assets and liabilities schedule for the previous three years.
  • Capital gains tax calculation (e.g., to address "exit tax").
  • Certificate of residence (if available).

• Important note: SARS does not accept handwritten documents; all must be typed. Taxpayers must also complete the “Declaration of Ceasing to be Tax Resident” form as a supporting document.

• Key takeaways:

  • Employers and globally mobile individuals must adapt to the new process.
  • The cessation must align with the basis stated in the declaration form.
  • Contact GMS or People Services for further assistance if needed.

**For further reading**: See SARS web page titled "Cease to be a Resident".